August 26, 2024
Company
name:Representative:

GS Yuasa Corporation

President andTakashi Abe
Representative
Director, CEO(TSE code: 6674, Prime Market)
Inquiries: Director and CFO
Hiroaki Matsushima(TEL. 075-312-1211)

Notice Regarding the Issuance of Sustainability-Linked Bonds
GS Yuasa Corporation (Tokyo Stock Exchange: 6674 “the Company”) announces that it has today
submitted an amended shelf registration statement to the Kanto Local Finance Bureau regarding theissuance of Sustainability-Linked Bonds (Note 1) (“the Bonds”), the first such issuance for the Company,aiming to motivate the advancement of sustainability management and to promote sustainable economic
activity and growth in terms of both the environment and society.
1.

Purpose and background of the issuance of the Bonds
Positioning “committing to people, society, and the global environment” through the "Innovation andGrowth" as its corporate philosophy, the GS Yuasa Group (“the Group”) is committed to utilizing advanced
technologies developed in the field of stored energy solutions to deliver security and comfort to ourcustomers around the globe, to make a real contribution to the global effort toward sustainability, and togrow corporate value.
As global efforts aimed at achieving a sustainable society gain momentum, the Company recognizes thatthe achievement of carbon neutrality is one of its most important management challenges. Now only has
the Company included “Renewable – Making a genuine contribution to carbon neutrality” in its long-term
vision, Vision 2035, it has also announced its “GY 2050 Carbon Neutrality Target,” aiming to achieve Scope
1 and 2 carbon neutrality by 2050.
In order to adapt to the social transformation with the shift to a decarbonized society (demands fromstakeholders to reduce greenhouse gas emissions, addition of a carbon price for the use of fossil fuels, ashift from fossil fuels to renewable energy, etc.), the Company is continuing to improve energy management
relating to its business activities and promoting reductions in greenhouse gas emissions.
In order to raise the funds needed to promote Sustainability Management and aim for the achievementof a sustainable society, the Company formulated its Sustainability-Linked Finance Framework (“theFramework”). By issuing the Bonds based on the Framework, the Company aims to further promote
Sustainability Management and both achieve a sustainable society and improve the Company’s enterprisevalue.
2.

Overview of the Bonds
Maturity (planned)

5 years

Issue amount (planned)¥10bn

Issue timing (planned)

September 2024 or later

KPI

Reduction of CO2 emissions volume (total volume, Scope 1, 2)

Sustainability performancetarget (SPT)

21% or higher reduction in CO2
FY2027 (compared to FY2018)
Observation date: September 29, 2028

1emissions

volumeinBond characteristics

Lead managers
Structuring agent (Note 2)

If the SPT is not achieved, the Company will, on or before theredemption date, make a donation to an organization, etc. working tofight climate change or purchase emission credits (CO2 reduction
value converted into credits or certificates) at an equivalent of 0.1%of the Bond issue amount
Nomura Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley
Securities Co., Ltd., SMBC Nikko Securities Inc.
Nomura Securities Co., Ltd.

3.

Calibration of SPT
The Company formulated its “GY 2030 Long-Term Greenhouse Gas Target,” aiming to reduce
FY2030 CO2 emissions (total volume, Scope 1 and 2) by at least 30% compared to FY2018, as part of its
corporate responsibility in the shift to a decarbonized society, and in the issuance of the Bonds, has set“21% or higher reduction in CO2 emissions volume in FY2027 (compared to FY2018)” as its SPT.
The GS Yuasa Group works toward achieving SPT by implementing “Promote energy-saving measures”,“Promote of generating renewable energy”, “Procure renewable energy”
4.

Reporting
KPI results for the basis period and each fiscal year will be disclosed annually in integrated reports or on
the Company’s website until the observation date for the set SPT.
Any information with the potential to impact achievement of the SPT (e.g. formulation of or amendment
to sustainability strategy) will be disclosed in a timely manner.
5.

Verification
The Company plans to have its KPI figures verified annually by an independent third party until theobservation date for the set SPT. Verification results will be disclosed annually in integrated reports and on
the Company’s website.
6.

Obtaining of external review (second-party opinion)
Leading up to the issuance of the Bonds, the Company formulated a Sustainability-Linked Finance
Framework and has obtained a second-party opinion from Japan Credit Rating Agency, Ltd. (JCR)
regarding the compatibility of the Framework with the “2024 Sustainability-Linked Bond Principles” by theInternational Capital Market Association (ICMA), “2023 Sustainability-Linked Loan Principles” by the Loan
Market Association (LMA), Asia Pacific Loan Market Association (APLMA), and the Loan Syndication &Trading Association (LSTA), and “2022 Sustainability-Linked Bond Guidelines” and “2022 SustainabilityLinked Loan Guidelines” by the Ministry of the Environment.
7. Reference
Sustainability-Linked Finance Framework
https://ir.gs-yuasa.com/en/ir/main/06/teaserItems1/0/linkList/0/link/SLB_framework_e.pdf(Note 1) Sustainability-Linked Bonds
Sustainability-Linked Bonds refer to bonds with characteristics that change depending on whether the issuer is able toachieve a pre-set sustainability target. There is no need to place limits on the use of financed funds, but the issuer must
commit to improvement of future results relating to sustainability (sustainability target) within a timeline set at bondissuance. Specifically, a key performance indicator (KPI) is set at bond issuance along with a sustainability performancetarget (SPT) stipulating a target value to achieve for the set KPI, and depending on whether the SPT has been achieved
at a future evaluation of performance, the bond characteristics will change.
(Note 2) Structuring agent
A party that supports the execution of sustainable finance through advice regarding formulation of a framework for
Sustainability-Linked Bonds and on obtaining external reviews including second-party opinion.

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